D&O and Agent Insurance

Fraternal Alliance Insurance Program

Be sure to consider the Fraternal Alliance insurance program when reviewing your society’s risk management strategy.  CalSurance (a division of Brown & Brown)* is working hard for member-societies by offering improved customer service and enhanced product offerings.  For program details, please contact Michele K. Gerace, Esq.,  CalSurance Associates, (201) 526-4628, mgerace@calsurance.com.

Agents’ Errors & Omissions Program
Insurance Carrier:  Zurich American Insurance Company

Limits of Liability:
$1,000,000    Each Claim
$1,000,000    Aggregate each Agent

- OR -

$2,000,000    Each Claim
$2,000,000    Aggregate each Agent

$500             Each claim involving products (Damages Only) of
sponsoring society
$1,000          Each claim involving outside products


  • Independent or captive agents (FT or PT)
  • Competitive rates
  • Mandatory or voluntary participation
  • No cost to sponsoring society
  • Premium collection options.

What does this policy insure?
Generally, the E&O policy provides protection for defense costs and damages arising from claims made against an Agent for any negligent act, error or omission in the performance of Professional Services.

Who is covered under the policy?

  • Agents
  • Any corporation, partnership or other business entity which engages in Professional Services and is either owned or controlled by the Agent
  • Any unlicensed employee or licensed administrative assistant employed by and acting on behalf of the Agent
  • The sponsoring society, for vicarious liability.

What professional services are covered?

The sale and/or servicing of:

  • Life insurance, accident and health, fixed annuities and disability income insurance
  • Variable insurance and annuities
  • Employee Benefit Plans
  • Mutual funds and securities (available for additional premium charge).

Management Liability Program

Common Claim Allegations

  • Mismanagement of operations or organization assets
  • Self-dealing and conflicts of interest
  • Acts beyond authority granted in by-laws
  • Violation of state and federal laws
  • Breach of fiduciary duties
  • Employment Practices

Management Liability Insurance

  • Directors, Officers and Organization
  • Employment Practices Liability
  • Fiduciary Liability
  • Outside Directorship Liability
  • Fidelity & Crime Insurance

Who is covered?

  • The insured organization
  • Subsidiaries of the parent company (more than 50% ownership)
  • Past, present and future executives and employees (does not include independent contractors)
  • Spousal and domestic partner
  • Can include in-house counsel and members of advisory committees.

Definition of Claim

  • Written demand for money or non-monetary relief
  • Civil and criminal proceedings
  • Administrative or regulatory proceedings
  • Written requests to toll or waive statute of limitations
  • Employment practices (most common claim for non-profit organizations)

Covered Wrongful Acts

  • Wrongful Act, including 1) error, misstatement, misleading statement, act, omission, neglect, breach of duty, and 2) against an insured person, must be acting in their capacity as such.

What Will the Policy Pay?

  • Judgments, settlements, and defense costs, including Ffront pay, back pay (EPL)
  • Damages, including punitive, exemplary and multiplied damages
  • Excise Benefit Tax (fiduciary liability coverage)

Outside Directorship Liability

  • Generally limited to not-for profit boards at request or consent of society
  • Not-for profit usually limited to 501(c)3.

The Fraternal Alliance Agents and Executive Risk Insurance Program – What You May Not Know
American Fraternal Alliance President and CEO Joseph J. Annotti interviews Michele Gerace of Calsurance and discovers a variety of reasons why fraternals need to become part of this valuable and very competitive program.  Use the Agents Errors and Omissions coverage to recruit and retain captive and independent agents.  Make sure your directors are adequately covered through this essential program.  Learn more about Calsurance’s intimate knowledge of the fraternal system and dedication to obtaining affordable and proper coverage.  Listen in by clicking here.

*Brown & Brown is ranked as the seventh largest independent insurance intermediary in the nation, with more than 68 years of continuous service. They take pride in offering clients the personal touch of a smaller organization combined with the depth and power of insurance knowledge one can only enjoy with a recognized industry leader. The majority of CalSurance’s management and staff have spent their entire careers working with insurance companies (including fraternal benefit societies) and their agents and representatives, with backgrounds ranging from brokering at major intermediary firms to underwriting and technical support experience at insurance carriers. Senior executives have nearly two decades or more of experience in the Professional Liability industry. Client relationships are long term in nature, some more than 20 years, and are solidified by CalSurance’s value added service. CalSurance’s goal is not to be ‘all things to all people,’ but to be the best option for those it serves.